I would like to understand how Bitcoin price move

[Bossian]

Hi guys,
Hi girls (probably not many here though),

I am trying to understand how Bitcoin price move, and especially trying to understand the big pump or big crash.

Right... so we all know it is about supply and demand, BUT it cannot be that simple, can it? Yesterday for instance, I exchanged 0.18 BTC to get some EUR, technically I sold 0.18 BTC, but on the other side someone (or several people) bought 0.18 BTC.

Which leads me to this thread, what makes the price move so much during certain periods?

And it's not about the quantity available because we know the quantity is limited and only decrease with time. So what are the exact mechanisms that dictate how the price move, up or down?

I am grateful for all your constructive replies. Please enlighten me  

[TimeBits]

That is pretty much it, supply and demand.

Price will go down, when people sell
Price will go up, when people buy

Merchants who accept bitcoin will normally sell right away to get the fiat price of there material or product cost back, so anytime bitcoin is used to buy goods and services it is normally sold instantly for fiat.

News can have a factor in these, or Tech developments.
Big pump is caused by lots of people buying
Big crash is caused by lots of people selling

You should never worry about the fiat price though, 1 bitcoin will always = 1 bitcoin even if 1 bitcoin = $0 usd or $10,000 usd.

If you read the first sentence of the whitepaper, bitcoin was never meant to be traded for fiat money like euro or usd for they are financial institutions.

One thing is for certain the scarcity of bitcoin after 2045 will only increase, but there will be something better than bitcoin by then, I hope. Even tho I am like one of the biggest bitcoin lovers in the game.

There is one constant if you look at the charts, Around Christmas price tends to dip a little after the new year for a month or two, then summer comes and price starts to go up, every year.

[CryptopreneurBrainboss]

Which leads me to this thread, what makes the price move so much during certain periods?

I understand where you confusion is coming from as when you successfully sell your bitcoin there most have been a buyer but just as you & timebits have said it's all about the demand and supply in the market at that period of time that determine the price to rise or fall. If there are more sellers and not enough buyers it results to a decline in prices as sellers keep competing within themselves on who's sells order goes through successful inorder to minimize losses therefore they keep reducing their sell price to the nearest buy price possible. The buyers also decrease their buy price as price keep falling which causes the sellers to panic and decrease their sell prices further.  Also as there isn't any bullish news to restore buyers hope the price keep falling until it reaches a support level that's the price range where most buyers where hopefully to buy at.

Here's an example; (using an Apple fruit to explain) If there are five available Apple sellers in the US but just one buyer, and currently FUD is spreading around due to some news of Apple getting banned in the US market, it causes the Apple sellers to panic and wanting to get rid of the Apple fruit to the nearest buyers. As there isn't enough buyers it means the 5 apple sellers will be competing to sell their apple in the lowest price possible to the available buyers which decreases the price of one Apple fruit in the market but in a case where there are more buyers than sellers due to some positive news (like Apple cures cancer), it brings in more buyers which causes the buyers to compete within themselves thereby increasing their buy price to get hold of some Apple which lead to the sellers to also increase their sell price the end, the price of one Apple fruit in the US market increases.

The key point here is when bitcoin price rasing it means buyers are competing within themselves which leads to more demand than supply but when price decreases it means sellers are competing within themselves which leads to more supply than demand.

[Upgrade00]

because we know the quantity is limited and only decrease with time.

Firstly, the quantity is limited, but does not  decrease with time. It has rather been increasing with time, and will until it gets to the maximum supply of 21 million coins

So what are the exact mechanisms that dictate how the price move, up or down?

It really is largely dependent on those factors; demand and supply. In other asset classes such as fiat, there is an organized system which controls and regulates the price, the products on sale at outlets also has a system behind it's pricing. But bitcoin has absolutely no regulatory body, and hence changes with the direction of the market.

Now there are many other factors which affects demand and supply; developments on the network, flaws or hacks, government interference, media publications and these could affect the value positively or negatively.

[idekai]

There's so much factor that could change the price of the bitcoin. it could rise or fall, depend on the factor.
Which are: oppinion, mindset, " words on the street ", supply and demand as you said and many more.
But the most affecting factor would be supply and demand. Imagine if bitcoin holders around the world
is going to sell their stock of bitcoins, all of them with condition that they got to sell it now no matter what.
Which means that, the supply of bitcoin that are ready to be bought is huge, and the buying order would be gone.
And there will be competitions among the seller, to get their bitcoins sold. And that will cause the price falling continously.
Without any doubt if there's no buying order and the holder of the bitcoin desperately going to sell their bitcoins, the price
will fall. It's an example of how supply and demand works,

[techbill]

Well, you sold at .18 btc at a certain amount and somebody bought it. But if not enough demand was available, the next person willing to sell at that amount will be force to lower their price. If not somebody else will, thus the price is lowered.

[Bossian]

Thanks for the constructive replies, did not have time to reply earlier.
I get it now, if I had struggled to get my price to sell my BTC then of course it would mean that the price is dropping.
Same reverses logic when the price goes up, you can afford to aim at a higher price because the demand is high.
Best of luck everyone 

[Talk merit]

You guys are not looking at the whole picture. Yes, supply and demand contribute to the price movements, but the reported prices are based on exchange trading, and do not include peer-to-peer and local bitcoin trades. For example, one of the mining companies sells blocks of Bitcoin to an ATM service. These transactions are not included in the trading stats, and do not affect the price. Similarly local exchanges in countries with problem currencies can be made at premiums of several hundred pounds, and this reflects a demand shortage of course,but it is not included in the international statistics.

Another factor is reported whale movements, and these may not be real trades, or may just be made to create bear or bull squeezes in a low volume market. Chart predictions can also be self-fulfilling, as traders rush to take advantage of the prophecy

[acmakc12]

The last half year of the bitcoin is clearly manipulated, for there is no other way to explain this, many factors foreshadowed at the beginning of the year that there will be growth, but it is not backed up by anything, just someone on this earns large sums.

[cryptoblazter]

Hi guys,
Hi girls (probably not many here though),

I am trying to understand how Bitcoin price move, and especially trying to understand the big pump or big crash.

Right... so we all know it is about supply and demand, BUT it cannot be that simple, can it? Yesterday for instance, I exchanged 0.18 BTC to get some EUR, technically I sold 0.18 BTC, but on the other side someone (or several people) bought 0.18 BTC.

Which leads me to this thread, what makes the price move so much during certain periods?

And it's not about the quantity available because we know the quantity is limited and only decrease with time. So what are the exact mechanisms that dictate how the price move, up or down?

I am grateful for all your constructive replies. Please enlighten me  

It is simply because of the demand and supply mate why Bitcoin price is moving in every platform exchange.
So the volatility was their reference guide for the individual traders to get profit too. That's how the market was called unpredictable
because of this things dude.